What is an E2 Visa Business Plan?
An E2 visa business plan is a document produced to support a person's E2 Treaty Investor visa application which outlines a detailed business model, strategy, and financial projections.
The E2 visa has several requirements and this document should show the U.S. Citizenship and Immigration Services (USCIS) that the business can generate sufficient revenue and create jobs. The specific business plan must be used in compliance with the associated visa criteria.
Here is a sample E2 visa business plan for your reference.
What Should be Included in the E2 Visa Business Plan
The E2 visa business plan should set out the respective company’s goals and projections. It should also detail how the E2 investment is going to be utilized. The same must showcase that the level of investment is sufficient to make the business operational and meet growth projections. It must include:
- E2 Company: The plan must state whether the particular E2 company is an established enterprise or a new venture. In either case, the business owner will need to prove it is bona fide and legitimate. The business must be profit-making, entrepreneurial undertaking, and an active venture that produces goods or delivers services.
- E2 Investment: The interested person must have to be clear on the level of investment made in the respective E2 company. They must also explain why this level is appropriate and compliant with the respective visa conditions. The investment sum must be reserved and available for use specifically by the E2 company. Moreover, the source of funds will also be given to prove it was lawfully received.
- E2 Applicant: The interested person must show that their respective role within the business is to direct and develop. It can be as an established or an existing enterprise. Moreover, the same person must also own at least 50% of the particular company. The investment sum must be in this person’s possession and have been obtained legitimately. They must also be able to show that the investment carries financial risk personally themselves.
Eligibility Criteria for the E2 Visa Business Plan
The entire E2 visa business process involves multiple factors. This involves confirming treaty agreements, assessing substantial investments, participating in the enterprise, and more. The other important aspects include:
- Having a Bilateral Agreement with the United States: The applicant must always establish the existence of a valid commerce. This must also include a treaty between their home country and the United States. The investor must also provide evidence that the capital was controlled by an individual with citizenship from a treaty country. This specific capital was always intended for investment in the enterprise.
- Investing from the Applicant’s Side: The E2 visa does not set a minimum investment threshold for anyone. Rather, the entire investment must be relative to the respective business expenses.
- Doing Additional Investments: The foreign national must have either already invested in the enterprise or initiated some kind of investment steps. This may further include actions like signing leases, incorporating a business, or purchasing equipment. The interested parties must also know that the funds must be unconditionally committed to the business.
- Possessing an Active, Real, and Substantial Commercial Venture: The applicant must provide a five-year plan that outlines the business’s operations, profit generation, and economic contribution. This helps establish the business as an actively operating, genuine, and non-marginal commercial enterprise.
- Leading and Guiding the Enterprise: The applicant must prove that the investment is in an active state. They must also prove that the business will directly engage in the operation of the commercial enterprise.
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Required Documents for the E2 Visa Business Plan
A few important documents are required to write a perfect E2 visa business plan. The same documents also endorse the information in the respective business plan:
- Lease agreement if any commercial space is rented out
- Real estate purchase or sales contract if some commercial space is purchased
- Franchise agreement
- Purchase or sales contract if some other business is bought
- Resume of the immigrant investor.
- Resume of any manager or executive already hired
- Articles of incorporation if it is an operational corporation
- Articles of organization if it is a limited liability company
- Explanation of the invested capital
Benefits of the E2 Visa Business Plan
The benefits of the E2 visa business plan can be numerous, but the major ones are:
- Establishing Success: Franchises are always part of established businesses with a proven track record in and around the United States. This often aligns with operational, real, and other non-marginal criteria.
- Having Familiarity With Consular Officers: These professionals are often familiar with franchises, which makes them more likely to view franchise investments favorably.
- Doing Traditional Investments: All franchises involve several traditional elements like physical storefronts, inventory, and equipment. It reduces the perception of speculative ventures.
- Needing Easier Oversight: Franchising agreements require oversight and guidance from the respective franchisor. This makes it easier for foreign nationals to meet the requirement of actively developing and managing the enterprise.
Disadvantages of the E2 Visa Business Plan
There are also notable drawbacks that often arise when any specific investor in the United considers an E2 visa business plan on investment.
- Timing Challenges: Franchises often involve some kind of extended training period. These are usually before the franchise can be opened or even purchased. This timing requirement often delays the filing of the business application and can seem to be problematic after the E2 visa plan proposal.
- Facing Escrow Complications: Several investors often opt to buy established businesses. This usually happens via an escrow setup to reduce risk. Moreover, franchises tend to bring about several added intricacies. These include specific franchisor demands and all kinds of franchise agreements. It can always complicate the application of an escrow arrangement and then meet the irrevocable commitment prerequisites.
- Reducing Control: A specific franchise investment can always diminish the investor’s level of control. This is because these people can often become dependent on the franchisor for documentation g when submitting their application.
Key Terms for the E2 Visa Business Plan
- Business Description: An explanation that summarizes what a particular company does, its purpose, and what specifically makes it unique.
- Marketing Strategy: The general scheme of a particular business to develop a customer base for the product or service that the business provides.
- Hiring Plan: A strategy that involves aligning hiring resources with all kinds of business goals and long-term staffing needs.
- Franchise: A joint venture between an original business and the franchisor under an existing trademark or a model.
- Operational Strategy: A set of decisions a particular organization makes regarding the production and delivery of several goods.
Final Thoughts on the E2 Visa Business Plan
Foreign investors who want to purchase or open a business in the United States via an E2 visa must always include a business plan within the application. The plan usually summarizes the next five years, financial projections, and a detailed overview regarding the petitioner, the investment, and the respective enterprise. The business plan is how the immigration official in the United States will learn about the venture. That is why it is necessary to craft the same plan with dedication and caution. The best thing to do here is approach a lawyer who is already well-versed in the process.
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